SKEWered

While stocks are surging in nominal terms, the options markets are increasingly pricing in greater and greater downside risk concerns. Currently, we are at record levels for this so-called Skew (meaning the price of downside protection outweighs the cost of upside protection by the most ever). Trade accordingly.

and if you are looking for 'cheap' hedges, here is Goldman's ranking of global across asset class hedge relative costs:

I remember from economics something called a business cycle too where there were actually periods of contraction and expansion. Can you imagine, contraction? I'm sure in economics now when talking about periods of contraction, the books just say "print more money."

Hahaha Gubbmint I love your nostalgia. Ahhh yes the good old days. Well I'm afraid the "D-Word" just isn't allowed anymore now that our dear leaders have outlawed gravity and made anyone who questions their incompetence, and I quote "a (financial) terrorist".

My fingers are severly burnt now from attempting to short this absurd market and now I'm wary. Very, very wary about trying to short again.

Right now the PDs have a deal going on: Using the Feds' money it's, I buy,then you buy then they buy, then I buy, then you buy.. and so on spiralling upward. The idea was that eventually retail would come in a buy the shit and take it off their hands for big profit. Ooops! No retail calvary came. New strategy: Using the Feds' money, I buy, then you buy...until someone blinks. Watch the movie "Margin Call" (bareable..just) for a hint as to who will be the first to cut and run.

Smithy is correct - the fed doesn't buy directly, everything is filtered through the primary dealers. The Fed can print til doomsday but has a hell of a time getting the money to flow exactly where it wants. Ol' Ben would just love to buy SPY directly and be done with it...